A strange email was received yesterday by some FTX users, from the FTX EU subsidiary. They are asked to enter their personal information in order to be able to withdraw their funds blocked on the platform. Let’s take a detailed look at this email and how to respond if you are affected.
https://cryptoast.fr/feed/
https://cryptoast.fr/ftx-eu-relance-t-il-vraiment-retraits-users/
An email sent by FTX EU
This Thursday, of FTX users received an email from FTX EU informing them of a procedure to recover their funds blocked on the platform. If you are concerned, it is important that you have all the information in your hands before taking action.
To begin, let’s quickly unwind the thread of events. On November 12, 2022, FTX Cryptocurrency Exchange Suddenly Collapses and leaves hundreds of thousands of users unable to touch their assets. Since then, the firm has been under chapter 11 of the United States bankruptcy law and a team of lawyers is working on the recovery of FTX.
Nevertheless, the situation remained intact for users, until yesterday. An email has been sent to FTX EU customers, i.e. individuals who created an account on FTX after March 2022. Indeed, other users who registered their account before this date are dependent on FTX International.
Here are excerpts from that email, reported by journalist Esprit Cryptique on Twitter:
The email in question was sent by the address [email protected]
It was obviously only sent to people dependent on the FTX EU entity.
Only customers registered after March 2022 belong to this entity. Other Europeans depend on FTX International. pic.twitter.com/tcD4RTYVcf
— Cryptic Spirit (@_Cryptic) March 30, 2023
In addition to a presentation of the general context of the situation, this e-mail reminds us that FTX’s European subsidiary, namely FTX EU, was regulated with the Cyprus Securities and Exchange Commission (CySEC). This is presented as “having the highest standards of regulation in the European Union” and so “FTX EU operated independently of the international platform”.
Still according to this e-mail, this implies that: “Customer fiat currency funds must be kept separately in legally protected bank accounts.” In other words, it would mean that FTX EU Client Funds Reportedly Unaffected by Sam Bankman-Fried Abuse. Furthermore, it is added that “to protect customers from additional risks […] the positions were closed and converted into euros”.
👉 All the answers to your questions about the FTX case
🎁 Cryptoast Research Launch Offer
1st Newsletter Free with the code TOASTNL
A procedure asking for your password
At the end of this e-mail, the user is directed to a website: ftxeurope.eu. Then he is asked to enter the email address and password used for their FTX accountverify their account and upload your identity documents to validate the Know Your Customer (KYC) procedure. Finally, he can initiate the procedure for claiming the funds.
First point, contrary to what can be conveyed on certain media, no withdrawals have been made at the time of writing these lines. Indeed, the email explains: “You will be notified when your identity verification has been validated. It can take up to a month”.
Second point, the website corresponds to a domain name that had been registered by FTX EU upon registration with CySEC. Nevertheless, it has been inactive for several months and FTX EU’s license has been suspended. Thus, it could be that the site has been hacked and used for malicious purposes.
All the more so that this e-mail was received the day after another e-mail, from the entity in charge of the bankruptcy and recovery of FTX. This informs former users of the balance they held on the platform on the date of the closure of services. It is not impossible that user data has fallen into the hands of malicious individuals.
Last point, according to the testimonies collected by Esprit Cryptique, some users having carried out the procedure explained above see the wrong amount on their balance. Others explain that they started a withdrawal procedure when the exchange was still active (still pending) and saw a zero balance appear on the website.
👉 Also in FTX news: Sam Bankman-Fried to plead not guilty to latest charges
How to react if one is concerned?
As we reported to you in February, FTX Japan has reinstated withdrawal services for platform users. Like FTX EU, this platform was born at the beginning of 2022 following a takeover and continued to evolve independently of FTX International. This is the reason why users were able to recover their funds.
Presumably – if the content of the email is to be believed – the situation is similar for FTX EU. However, unlike the Japanese subsidiary, no official communication has been made by the European entity of the defunct trading platform. A sign that is obviously not reassuring and which invites all those concerned to exercise extreme caution, awaiting more information. Especially since if what is indicated in this e-mail is verified, the funds would be safe and there is no rush to recover them.
The scenario of a malicious attack is obviously not to be excluded for the moment. Asking for your e-mail address, your password, as well as your documents allowing you to carry out the KYC procedures suggests that they could be used later by these individuals to retrieve funds from your FTX account for you.
Although this is all guesswork, so caution is definitely the best bet here.
👉 To read – The National Assembly voted against crypto influencers, what should we understand?
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Journalist for Cryptoast, I strive to dissect every detail of the exciting world of cryptocurrencies and make it accessible and understandable to as many people as possible.
Lilian Aliaga
412 items
